Question of the Day: Should America Get A Break from Gas Tax this Summer?
There’s been a lot of talk in recent days about the plan endorsed by John McCain and Hillary Clinton, and opposed by Barack Obama, to give Americans a “holiday
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Comments
Cicero
Reminds of of Georgia after Hurricane Katrina, the governor there eliminated the state tax on gas when the prices spiked
chartguy
Do not cut the gas tax.
Cutting gas taxes would be counter-productive. The price is causing people to consume less gasoline. A temporary cut in the tax would allow some to postpone making the changes that they need to make.
Nobody has mentioned the fact that our nation's highways need to be repaired, and this would cut into the funds that pay for those necessary repairs.
One of the best things that government could do would be to cut the ethanol subsidies. These have driven up food prices worldwide, and may actually cause us to use more energy (scientists debate that last point). They also are expanding the dead zone in the Gulf of Mexico (we grow more corn, which uses much more fertilizer, which causes the algae blooms which consume the oxygen, killing most other forms of life).
Another obvious solution would be to remove some of the ridiculous restrictions in the US that limit drilling for more oil. Whether it's the Anwar, off Malibu, NW Colorado or North Dakota, there's oil available that our lawmakers have chosen to prohibit us from drilling.
How much? The USGS estimates that just the 1002 area of the ANWAR contains 4.3 billion barrels (95% probability) and possibly as much as 11.8 billion barrels (5% probability) of technically recoverable oil. If we used that to replace 5% of our daily consumption, it would knock prices down more than the gas tax. At that rate, it would last at least 12 years, and possibly 32 years.
If you want to blame someone for high gas prices, look to Congress!
larry
No! 1. Stopping the gas tax will only shift the problem into the future instead of identifying the real problem and attacking that now 2. It would seem the only way we are going to change from our oil driven economy is to make oil more expensive than alternatives. 3. It may well turn out that the oil spike is created artificially to help influence the national election.
Charles
As much as I would like to think it would help, the oil companies would raise the price enough to take it!
I think let the free market decide the price!
Its not like the 70s, there are a plenty of cars to choose from that get great gas mileage!
bruce armstrong
Read Kevin Phillips' new book BAD MONEY and you won't ask questions like this.....the price of gasoline, taxes and all, is a simple reflection of America's stupid economic policies and drunken spending....the Boy George Dollar is sinking fast and who can blame countries for wanting more of them to buy limited remaining assets?
ZeGerman
While I certainly don't know anything about policymaking, I can say with certainty that changes need to be happening from the automakers, as well as consumers.
I feel that giving the US a "holiday" from the gas tax would do nothing to address why the US is having economic woes in the first place. I'm a believer in the idea that necessity is the mother of invention, and automakers won't bring us out of the 20th century until they are forced to. Also, people won't begin changing their lifestyles until they haven't got a choice.
Gas is only going to become more expensive (since it is finite), and if the US economy can't handle the added cost, Washington had better work harder to lift the country out of the recession.
DJ Martin III
What they are speaking to is the federal tax which only consists of approx. $.16 per gallon. Assuming gas at $3.50 per gallon, this represents a grand savings of 4.5%. This is pure politics. Offer something that grabs the press, but will provide little relief in reality.
Art
Cellulosic ethanol is now in test production at a cost of $1.00 a gallon. GM is backing the development of this process that uses switch grass, wood chips and other plant matter. It would be sad if manufacturers stopped producing E-85 equipped vehicles.
As for the the gas tax, pandering is the only way to discribe this joke of a concept. Loss of funds for highway maintenence and the loss of jobs that would follow would be a great loss to the country. How does it solve the price problem? I think that perhaps McCain and Clinton should run together.
Ducati Minor
Sugar ethanol is a much better fuel than corn ethanol, but E85 is now selling for cheaper than gasoline and way below the price of diesel in Texas. The extent by which E85 was embraced and then denounced by the media is typical; but a lot of the anti-ethanol proponents have been diesel fans. As we see today, diesel is pretty near death in America. (At the worst time...when automakers are just beginning to develop diesel engines for America.)
I'm for a seasonal break as a way of giving Americans some breathing space for the continued climb in prices. Americans are accepting that smaller is better. That's the only way we will be able to manage. We're not in a crisis, but our energy habits aren't helping. I do take a slight bit of glee about fuel costs. Consumer Reports had praised to Mercedes E320 CDI for fuel economy and the reasonable price of diesel at $2.90 a gal. compared to the Lexus LS600h. Man, were those guys wrong.
Ducati Minor
No, I'm not arguing the Lexus is a bargain or a solution at all. I just wanted to poke fun at Consumer Reports.
dante
Americans have a tradition of ignoring the world until the world comes poking them with a stick. Then when they get outraged, little can stop them. WWII is a perfect example of this. Other countries may shrug in resignation and accept high gas prices, but not Americans (even when ours are still comparatively very low), and the more pissed off they get about it, the more likely they will be to solve the problem. This gas tax is insignificant, but I don't want to see the prices go down at all - I want to this country get universally pissed off and find a solution and then possibly lead the world with our breakthrough(s). This is not an easy task and it won't happen if only a few are working on the solution - the country as a whole needs to support it.
Jeff
NO!!!! This is simple. It'd be a bad idea to do this. I'm convinced that the oil companies would take most of the difference in price for profit, and we would only see a little cut in price. Then there'd be the price shock when the tax was re-activated- maybe instead of moaning about gas, which is still pretty cheap here compared to, well, EVERYWHERE ELSE ON THE PLANET (except Iran, I suppose), we should look for a serious solution. Step 1: stop buying humongous vehicles, then complaining about how it slurps gas. Maybe if we had somewhat more normally sized cars, the gas wouldn't seem so bad. Man, the fact that 2 of the 3 candidates support a gas tax "holiday" makes me concerned for the future of our country.
MontyInNJ
No!! Usage would go up, gas reserves could go lower and prices will spike to compensate for the shortage. Making prices even higher and as a bonus, a shortage in funds to repair potholes.
Nate
I'm completely against the "break", for all the reasons that others have stated.
If there's one thing which will motivate almost all Americans to take action/demand change (economically-, environmentally-wise, etc.), it's the skyrocketing prices of, well..... everything.
Unfortunately, it's rising gas prices, rather than environmental concerns, which are (finally!) helping to curb America's huge appetite for energy, but any change is a move in the right direction.
I'm also completely opposed to drilling in protected areas. Sure, it might lower gas prices a bit, but that will only increase the demand of gasoline, and after it runs out, you have no more oil or wildlife, and gas prices will shoot right back up.
The only solution to high gas prices is to find a renewable alternative, and fast...
MGBYG
Pandering to the people...Shrillary and McTheSame.
corco16446
I don't want it, but once it's here I'll happily pay less for gas
Chris W
No!
texan
No
Andy II
The only thing that will force our country to stop burning things to power our cars (besides hydrogen) is high gas prices! And people are probably thinking "yeah right, in 10 years we'll be off gasoline" but what people don't realize is that when people think of the future they always think things are going to be magnificently better and efficient... but that is really not the way it is.
since the 1970's the only thing that has really changed or been invented is the computer... we're still using cars that get on average below 20 mpg.. and we're still burning gasoline!
http://www.autobloggreen.com/2008/04/16/jack-nicholson-driving-a-hydroge...
Heck, in 1978 Jack Nicholson was driving a hydrogen car. Using solar cells on top of his house to split rainwater into hydrogen and oxygen. Then using that hydrogen to power his car! The sad thing is that he thought this was the way of the future... Um... sorry Jack but it is 30 years later and guess what... we're still using our gasoline cars!!!
Does this make anyone else mad? That besides the computer and internet, we have made no advances? And people saying "oh hybrids" or "what about electric cars?" Sorry to break it to you but those concepts are over a century old. Back in 1832 Robert Anderson Produced an electric car similar in looks to the ford model T. Then the first hybrid was also from that era. It was a car about the size of the really old Cadillacs from around the turn of the century. This car had an electric motor driving the rear wheels and a gasoline motor driving the front.
And yet the oil companies keep making money. Because we keep buying gas for our gasoline cars. And the automakers really have not made any headway into alternative fuels... Yes honda has their Fuel Cell Vehicle, and yes Chevy has the Volt and their Hydrogen Equinox... but when will those cars be sold on a grand scale?
the answer to that question is once we can support hydrogen at filling stations around the nation. Once we harness then wind and the sun for generating electricity. WE ARE REALLY DOING SO LITTLE TO MOVE FORWARD!
So after all of that, yes, gas prices should stay the same, if not shoot up higher. Gas tax should remain. People will then realize how much more sense it makes to drive an electric vehicle which costs $20 for 1000 miles
Dave
It is estimated that in 20 years we will still be 80% dependent on oil. This means we will be more and more dependent on other countries for our future. This also means the price will also continue to increase. I see $5, $6, $7 a gallon. So the 16 cents federal tax for one summer is not going to be significant. people forget the thousands of products we use that are made from oil. Where would we be without plastic? It will have to be replaced...too expensive.
Congress has limited drilling to only 15% of our oil rich territories. We have not been allowed to build any refineries in 30 years. When any refinery goes down, expect gasoline prices to reach $10 per gallon in the blink of an eye, as recently happened in Scottland. How would that play on our economy? We need more than 16 cents. We need a whole program for the next 20 years. Drilling for more oil today would take 5 to 10 years for it to come to market...so we are stuck being ruled by other countries. By the way Canada is the single largest supplier (12%) to the US.
The middle east 34% of our oil. Total imports are 63% and growing yearly.
And beyond what ignorant people blame on the oil companies...they have a margin of profit of 7 to 8%. Your bank makes more than 7 or 8 cents on a dollar.
Did you knaow that synthetic can be made at a cost of $55 a barrel, compare that to crude oil at $120.
bepsf
Nope - Stupid idea to reduce revenue for a government that's already so deep in the red that our grandchildren won't be able to pay off our debt.
JB
It's all moot. The only two people in Congress who are even the least bit interested in doing this are running for President. All a bunch of nonsense...
Jonathan Fung
The gas tax is a benefits-received tax. We tax it because people receive benefits from gas, and therefore, it's reasonable to tax it. And as chartguy pointed out, the revenues from the gas tax help pay for our roads, which is rather important. Other people have covered the main salient points. But really, this is an economically unsound plan with no major benefits other than the hopes of getting more votes.
Steve
It's good to see such a wide majority of this group (granted, a limited sample) so strongly opinionated and fairly educated... That can only mean that the tide is turning, and democracy is about to start working...
BillyBob
Well, we could have taken that HALF TRILLION DOLLARS that we've wasted in Iraq and instead given our citizens a real holiday with free gas for life.
No to Hillary or John, Yes to Obama who has said "NO" already based on logic. ("NO" gas holiday, "NO" Iraq)
The Man
Sure! Lower the price back to at least $2 a gallon. Trust me, the rising gas prices don't really hurt me at all, but there's a lot of people out there who DON'T CARE about the bigger economy and ethanol, and whether Obama or McCain or Clinton get elected. They just want be able to afford to go to work and make money for yet more gas for going to work.
Dane
Yes.... But be advised it will go up in the fall...
Hillary 2008!!!!!!!!
Andy II
Ethanol is stupid because it takes more energy to produce than you get back!
X3 SoB
@ Andy II
Corn based ethanol indeed does not make much sense, the energy return is 1.2:1 to 1.5:1. However, cellulosic ethanol from switchgrass can yield an energy return as high as 12:1, making it a good energy source.
X3 SoB
It is indeed sad that people such as McCain, Clinton, and Bush don’t see the big picture. I won’t add to the “rants
Garfield134
No. Eliminating the gas tax is:
1. a political move to get elected
2. shortsighted or should I say Washington at it finest.
A band aid for the short term.
From my post yesterday:
I have heard that the amount of total savings would add up to about $25 per car over the time period of the “holiday
MGBYG
Read this canard above: "We have not been allowed to build any refineries in 30 years."
You work for major Petro?
Show us ONE reference to a major oil company SEEKING the permits to build a new refinery...
No permits have been issued because NONE HAVE BEEN ASKED FOR.
Due to greater efficiency, ALL oil-crackers DON'T WANT new facilities, DON'T WANT to over-supply and drop the prices. They like biing at 80-85% capacity and scaring everyone that they are over-stretched...sound like anyone you know?
Keep your supply as low as possible to keep prices up, stoke the constant "be afraid of the brown-skinned people" fear, don't file for permits to open more refineries, spend millions advertising how great you are on the TeeVee, and blame those Liberals and their supposed NIMBY cries.
Sounds like 35$Billion per quarter is a proper Republican profit and the "useless" government should remove it's take because those silly Democrats actually just want to fix roads and bridges...
Obama08
Ducati Minor
I dunno guys...everyone was saying the surge would do nothing in Iraq...I'll give McCain some leeway on this. Most of you were saying we'd be flocking to diesel by now.
We know how nice that's going.
Leo H
No ... we need to use less !!! Stop the driving for no reason, start planning trips.
EASY !!!
Luke
Nope, the government needs money pretty badly
I don't think gas is going to get cheaper even if they do cut the gas tax. Americans just have to grow up for once and stop driving so goddamn much. It's going to have to stay that way, too.
Ducati Major
Ducati Minor, even using diesel at 4.15 a gallon and premium at 3.75, the Merc E320 Bluetec still saves hundreds per year over the Lexus 600h. Check it out at www.fueleconomy.gov
Mena
What does maturity as a nation have to do with the amount of driving we do? Are you familiar with American geography? Do you know that we have some of the longest commutes? We're not out wandering the roads aimlessly. We drive to the store, we drive to work, we drive to our parents homes, we drive to go on vacation.
Some of you guys portray yourselves as children with your viewpoints of the world you live in. Do you have ANY understanding at all of anything outside of your own lives? Do you care?
I'm really sorry to sound high and mighty and I am by NO means perfect but try to put yourself in the next mans shoes for once before you judge.
Brett
Ducati Major?! How derivative and unoriginal. You can't come up with a better name than that? Like Dumbarss!
Rip
Leave the tax in place and eliminate the $129bil, in 2007, profits for Exxon/Mobile/Shell/BP etc.
That would equal a tax break or maybe just eliminate their tax subsidies, do they really need a break when they are raking in $129bil in profits?
Now on to politics, do we need another senior running the country? And he's not even an actor?
VMMVMMM
No way. This is one of the stupidest ideas I have ever heard of. Pandering to the ignorant is no way to win votes. I'm ashamed of the two who are suggesting this.
Ducati Minor
Brett, I was thinking the same thing.
The LS is actually classified in the same category as the S-class Mercedes--not the E. In fact, a better car to compare it with is the GS450h.
John
NO! NO! NO!
This is political BS. Two of the three candidates for president are trying to round up emotioal votes. Forget it. It makes no sense. This is Political VS. And, that's the truth.
Scott
No. And don't bailout people who can't pay for their homes they knew they couldn't afford either. How about starting to plug the "hole" in spending and actually strengthen the dollar?
But a holiday from gas tax?, pretty stupid.
JStun
The problem with this proposal is in its flawed economic thinking. An ignorant public would hear this proposal and think that they would actually be able to buy gas for cheaper if it were not taxed. This is so wrong! Lifting the tax on gas would only take money that could be funding highway maintenance and stuff it into the pockets of the oil company executives. Markets work! There would be no reason for oil companies to lower prices and charge less than they could-- below what demand is dictating price should be. If the tax were lifted overnight, consumers would get up in the morning and buy gas for the same price, unaware of the change. They might notice when they are driving down pot hole swiss cheese roads, being passed by more oil company corporate fatcats in chauffer driven company limos than you can shake a stick at.
Jeff
@X3 SoB: _It is indeed sad that people such as McCain, Clinton, and Bush don’t see the big picture._
They do, they just don't care. They don't have to live in the same world we do. They get chauffeured around everywhere, they don't have to worry about parking, they haven't pumped their own gas in over ten years, they don't have to cook for themselves, have to worry about paying bills, health insurance, etc.
This is what we get when we have nothing but rich people calling the shots.
clb3
The price of energy is market based (supply and demand), with the growing economies of other nations the price is obviously bound to increase.The Democrats and the Republican sellouts with their bogus reasons to not open Anwar or any other domestic oil source (plus Jimmy Carter's prized windfall profits tax which prohibits exploration and production due to the extra costs imposed by such idiocy from the Left) and the bogus phony and stupid enviromentalists(go green to hide your red!)we get what we elect and the typical American dumbass is paying for it by re-electing these cretans repeatedly! The windfall profit is going to the gov't. vis-a-vis the lease fees and taxes. They of course incur no costs in this process (other than the saleries of the useless bureaucrats(actually it is the tax payers who incur the costs!)'Nuff said!!!!!!!!!
Brett
Using Major(idiot)'s fueleconomy.gov site's Compare Side by Side feature for the GS 450h and the E320 Bluetec reveals that the Lexus costs a penny more every three miles. Close, but it still loses to the Merc.
Glenn
I think it should be the other way around. We pay the tax but not pay the as companies. I would rather pay the government then add to the record breaking profits of the gas companies. It is a choice of the lesser of two evils, but the government actually wins over the gas companies for me.
Ben
I agree with most of you. We just need to use less petroleum and strengthen the dollar somehow. I don't believe there is a fuel shortage (being at 85% capacity) and I don't understand how oil companies can earn record-breaking profits year after year.
Doesn't the U.S. export most of the oil it drills?
Mena
Ben,
I think we do. Remember the oil companies don't just make money from us, they also make money from India, China and etc. Even if we lessen our usage, the oil companies will still make tons of money. When China REALLY gets going, it will us look retarded. They've almost caught up to our usage levels and they're just getting started.
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